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Xayd
 
Quote:
Originally Posted by LegendKiller View Post
I was pondering your post as I sat in my 30th floor office overlooking the Chrysler tower. I realized you don't even have a pay grade up here, so it's easy to see why you have no fucking clue what happened to Bear.

Sure, CDO's weren't completely investment grade, since the agencies and everybody else screwed the pooch. However, what BSC was holding wasn't purely CDOs, but were also sub and mezz tranche RMBS which will still illiquid.

However, had they access to liquidity, they would have been just fine, since those assets are only worth less (not worthless) because short-term mark to markets based upon liquidity premium, not actual intrinsic value.

You see, BSC didn't die because subprime, they died because confidence was lost by their main clients, prime brokerage accounts. These are more or less a retail bank's equiv. to deposits and are as prone to runs as any depository bank. Since BSC had to sell illiquid assets at super illiquid prices to redeem brokerage accounts, they ran out of liquidity. As people heard of them drawing down liquidity lines from other banks, other banks pulled undrawn liquidity lines.

It was a simple precipitous run on a bank. I saw as my own bank pulled the prime brokerage liquidity line from BSC, along with all other banks. It was an interesting email trail crossing 3 continents, all wondering our total exposure and how quick it could be mitigated.

Now you may think yourself the ultimate source of economic knowledge, but unless you work in this area and see how things are progressing, your a fucking babe in the woods.

Go fuck a donkey for all I care, you'll still never even get close to my supposedly meager paygrade.



when you are up to your ass in a high risk asset and it loses value, your credit falters. did they not teach you that? the reason liquidity disappeared was the junk debt.

and we can compare net worth if you want to, but i doubt that you do. hint: you sit in that office of yours working for someone else, i work for no one.
Old 04-03-2008, 02:31 PM Xayd is offline  
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anomaly95
 
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Can we take this pissing contest elsewhere?
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Old 04-03-2008, 03:12 PM anomaly95 is offline  
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Free_Willy
 
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Another sign is the truckers strike.

They crawled three abreast around Atlanta last week.

I have family and friends who are parking thier rigs because $2,200 loads cost 1700 in fuel just to deliver and take 4-5 days! Thats before even insurance and payment!

When OTR trucks stop rolling the country collapses. Period.

This is the "sign" everyome should be most worried about.

Notice the mack of media coverage, its there but not very loud
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Old 04-03-2008, 04:00 PM Free_Willy is offline  
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LegendKiller
 
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Originally Posted by Xayd View Post


when you are up to your ass in a high risk asset and it loses value, your credit falters. did they not teach you that? the reason liquidity disappeared was the junk debt.

and we can compare net worth if you want to, but i doubt that you do. hint: you sit in that office of yours working for someone else, i work for no one.

The assets aren't all that high risk, it's short-term revaluation in liquidity desperation sales that are driving the problems. I see it at my job every day.

ROFL, you can try to argue about net worth, but anybody on here isn't exactly rolling in dough, so your argument isn't going far sparky.
Old 04-09-2008, 03:21 PM LegendKiller is offline  
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